By: Anthony Smith George Willett Brian Stout
Key Insights
- Cargo theft is now primarily driven by organized crime rings that use advanced technology, insider knowledge, and systemic vulnerabilities.
- Food and beverages remain top targets due to their ease of resale and lack of traceability, with high-value goods, such as specialized food products, closely following.
- Cyber threats take center stage in modern cargo theft as criminals operate remotely to exploit GPS jammers, automatic identification system (AIS) spoofing, and digital fraud to reroute shipments, disrupt operations, and steal cargo.
- Organized criminal networks exploit vulnerabilities in the supply chain, leading to operational delays, inflated costs, and complex claims involving fraud and litigation.
- Proactive strategies, including real-time tracking, vendor oversight, and faster claims reporting, are critical to mitigating risks and improving outcomes.
Once a risk that was purely physical and tangible, cargo theft is now a fast-evolving, tech-driven threat that outpaces traditional risk controls. Today's operations are data-led, networked, and often supported by insider access and digital vulnerabilities deep within supply chains.
As George Willett, President of US Cargo at Gallagher Bassett (GB), puts it, cargo theft has become "a calculated, data-driven operation orchestrated by highly organized crime rings," scaling local incidents into coordinated, cross-border crimes. "What used to be small-scale, local operations [have] now transformed into large-scale crimes, backed by significant financial resources."
This shift is not just changing how theft occurs; it's exposing the limitations of conventional risk management approaches. In 2025, cargo theft cost motor carriers and logistics providers an estimated $6.6 billion — or more than $18 million per day,1 underscoring the growing financial and operational stakes.
As cargo theft now includes threats of data manipulation, fraud, and system compromises triggering widespread disruption, the real question concerns how these sophisticated and systemic risks are evolving.
The Threat Landscape: Emerging Patterns in Modern Cargo Theft
Inland cargo theft is adapting to one of the most audacious tactics: a Romanian rollover, in which criminals target moving trucks to steal goods mid-transit. This tactic, which originated in Romania, involves a convoy of vehicles working together to execute the heist.
"It is like something out of a movie, but in reality, it can be deeply traumatic for those involved," says Anthony Smith, CEO of W K Webster & Co Ltd., a GB company. He explains, "In a recent investigation, evidence revealed marks on the dirt surrounding a truck, suggesting that an individual climbed from a moving vehicle and maneuvered over the secured tail lift to access the rear of the vehicle."
Such high-risk operations reflect how theft can occur even while cargo is in transit, not just when parked or stored.
Consumer goods, such as food and beverages, remain prime targets for theft due to their ease of resale and lack of traceability. "Food theft is persistent because thieves know that food products do not have serial numbers or tracking mechanisms, making them easy to sell without raising suspicion," George Willett explains.
A striking example of food theft occurred in March 2026 when a large shipment of limited-edition chocolate bars was stolen in transit.2 Designed as part of a promotional campaign, the goods left the factory in central Italy and were en route to Poland. During transit, the vehicle was stopped by individuals impersonating law enforcement, who then stole both the vehicle and its specialized cargo.
High-value cargo thefts of this nature underscore the importance of vetting carriers and implementing robust identity verification processes.
The digital arms race between supply chain firms and organized criminals reinforces the idea that cargo crime is no longer just about securing assets. Threat actors increasingly leverage tools such as GPS jammers, AIS spoofing, and double-brokering scams to disrupt supply chain operations.
There are two major categories of cyber threats in marine and logistics:
- Shore-based exposures: These include attacks on Terminal Operating Systems, where ransomware and extortion pose the most prevalent threats. Given the time sensitivity of cargo shipments, such attacks can cause cargo accumulation and disrupt entire logistics networks, resulting in operational and financial losses.
- Shipboard/navigation exposures: Criminals manipulate vessel GPS systems using counterfeit signals, which can lead to groundings and collisions, or even lure vessels into hostile territorial waters. This method not only endangers cargo but also raises significant safety and liability concerns.
Advanced technology use and sophisticated fraud techniques are on the rise among threat actors to gain access to sensitive shipping schedules, warehouse locations, and user identities. This trend is creating a new dimension of risk for businesses that's more strategic — one that's harder to detect and significantly more complex to resolve.
Today, criminals are using deepfakes to manipulate systems and forge evidence to gain unauthorized access to cargo. They are even implementing cyber-enabled shipment rerouting that allows them to steal the entire cargo remotely with a single click.
Fraud sophistication is also rising with evolving tactics, including staged incidents and inflated losses. Criminals are using techniques such as digital freight brokerage fraud, in which poorly vetted carriers use forged documents to impersonate legitimate operators and steal goods, often without raising suspicion.
Beyond the Theft: Operational Impact and Financial Consequences
Modern cargo theft is no longer just about stolen goods; it's about the cascading effects that disrupt entire supply chains. Anthony Smith explains, "Clients are now facing delays to cargo, altered trade routes, additional freight charges, and even contractual responses like deviations and force majeure clauses." These disruptions are becoming increasingly common as businesses adapt to a volatile risk landscape.
The shift from "just-in-time" to "just-in-case" supply chain models has placed significant strain on traditional marine infrastructure, including ports, terminals, and near-port storage facilities. With 9 in 10 businesses adopting stockpiling strategies, ports that are traditionally designed for high-speed transit are now evolving into high-capacity storage hubs.
"We have seen the development of large near-port storage facilities due to operators needing more space to manage client demands, altering the overall risk profile," Smith notes. This transition has led to changes in claim patterns, with cargo remaining parked for longer periods, increasing risks of theft and damage.
Expanding the Supply Chain Risk Impact on Cargo Theft Claims
The complexity of cargo theft claims in the US has grown significantly. Losses now often involve a blend of physical theft, cyber disruption, litigation, and fraud, creating multi-layered investigations that are more resource intensive.
"Today, determining how a theft occurred requires digital forensic analysis, which is often hindered by confidentiality and security concerns," George Willett adds.
Moreover, when a theft involves hacking, rerouting, or identity fraud, insurance coverage may not respond as businesses expect, especially where cyber exclusions apply. This creates coverage gaps that leave businesses vulnerable.
Accountability within the chain of custody remains a challenge, particularly when subcontracted shipments are involved. This can create complexities in determining responsibility and ensuring proper oversight.
Three Critical Cargo Risks Businesses Need to Watch
- Stockpiling: While stockpiling helps mitigate supply chain disruptions, large stockpiles of goods introduce complacency in security checks, increasing the risk of theft or damage. Additionally, it introduces separate storage challenges, such as vulnerabilities to climate extremes, including floods, hurricanes, or extreme heat, leading to spoilage and contamination of goods.
- Aging infrastructure: Ports and terminals across the US face significant risks due to aging systems. Maintaining all operations during upgrades creates logistical bottlenecks for such facilities and increases the risk of cargo delays and mismanagement due to reduced efficiency and heightened vulnerabilities during construction or maintenance periods.
- Insider threats: Criminals are increasingly using insider knowledge from warehouse staff, logistics coordinators, and drivers within supply chain companies, transport frameworks, and distributors to identify and exploit security weaknesses. They use sensitive information about shipment schedules, routes, or security protocols to manipulate systems and gain unauthorized access to cargo.
Bridging Insurance Gaps in a Changing Risk Landscape
The increasing use of technology in cargo theft has created complexities in claims and coverage, leaving businesses exposed to potential policy gaps.
The ambiguity in policy wording, particularly concerning cyber exclusions, remains a key issue. For instance, traditional cargo insurance may cover physical theft or damage, but losses caused by cyberattacks, such as hacking or rerouting shipments, may fall outside the scope of coverage. This creates uncertainty for businesses when claims arise from incidents involving both physical and cyber elements.
How Are Insurers Responding?
In the US market, insurance carriers are providing capacity at scale for the placement of large cargo insurance programs. We have also seen a significant number of US‑based MGA platforms established over the last 24 months, with a strong focus on building out Marine Cargo books. This is creating excess capacity and driving cargo rates downwards.
Although the insurance industry has made significant progress in addressing "silent cyber" (cyber risks not explicitly included or excluded in traditional policies), it's critical for businesses to understand the importance of having tailored policies that address the full spectrum of risks, from physical theft to data breaches.
Furthermore, businesses can work closely with their brokers to review policy exclusions and ensure their coverage aligns with their operational needs. By strengthening their risk management strategies and ensuring comprehensive insurance coverage, businesses can better navigate the complexities of today's risk environment.
Proactive Risk Management and Claims Response Strategies
The fight against cargo theft begins with proactive measures that leverage technology and robust operational strategies. This requires businesses to implement tools that track and monitor technologies, reducing risk exposures and mitigating losses.
"Real-time visibility into cargo movements allows clients to identify which transit chain sections are being affected by bad actors and take action before a loss becomes inevitable," George Willett explains. Moreover, real-time alerts for temperature-sensitive cargo provide an extra layer of protection, enabling clients to intercept shipments and address issues before spoilage or damage occurs.
Real-time data capture during transit also plays a crucial role. "Better scene data and automated triage improve decision-making by providing actionable insights that allow businesses to prioritize interventions based on severity, urgency and risk exposure," Willett says. This approach not only streamlines claims resolution but also reduces attorney involvement and strengthens the overall risk management framework.
Understanding the importance of cyber hygiene in today's interconnected supply chains is now more crucial than ever. "Clients can reduce vulnerabilities in third-party software by adopting strict information security controls across multinational operations," Willett advises. This includes measures such as geofencing, route planning, and the use of tamper-evident seals to deter theft. Such security controls also prepare businesses for opportunistic resale markets, which include informal or unauthorized channels where stolen goods are quickly sold, often at reduced prices, to avoid detection.
The integration of AI-driven tools is also transforming risk management. Emerging technologies can analyze driver and company data to flag potential risks, providing an additional layer of security. While these tools are still in development, they hold promise for enhancing supply chain integrity and reducing vulnerabilities.
Brian Stout underscores the role of secure parking practices and vendor oversight in mitigating risks. "Criminals often bypass security protocols with new mechanisms," he notes. "By vetting carriers with AI-driven vetting systems and limiting subcontracting, businesses can reduce vulnerabilities and ensure accountability throughout the supply chain."
Furthermore, by implementing clear contracts and conducting thorough risk assessments of vendors, businesses can enhance security measures and minimize exposure to theft. Additionally, employing skilled logistics professionals to oversee operations ensures compliance with security protocols and helps identify potential risks before they escalate.
When cargo theft occurs, speed becomes a critical factor in mitigating losses. GB emphasizes the importance of a faster First Notice of Loss and early intervention. "The faster we act, the better the outcomes," George Willett explains. Early intervention supports evidence preservation, facilitates better triage, and enables effective mitigation, reducing the severity of claims.
Paul Cho, global head of Auto Product at GB, adds, "Speed is not just about responding quickly; it is about responding intelligently. By leveraging analytics, we can identify fraud patterns, guide litigation strategies, and ensure fairer, faster outcomes." For example, advanced analytics can detect organized fraud, inflated losses, and strategic claims behavior, allowing businesses to address these issues before they escalate.
Building Resilience with Gallagher Bassett
Building resilience in the face of cargo theft requires a multi-faceted approach that combines technology and collaboration with education — "a vital component of risk management," according to George Willett. "By understanding industry trends and preventive measures, clients can reduce recurring instances and improve outcomes."
The key to resilience lies in preparation and innovation. It is about staying one step ahead of the criminals by using technology to monitor, predict, and prevent theft.
GB collaborates closely with clients to share best practices, benchmark performance, and recommend tailored improvements. Recognizing the critical importance of speed and data-driven insights in successful cargo recovery, the company emphasizes rapid claims reporting, diligent tracking, and proactive recovery strategies to prevent escalation.
In addition to claims response, GB emphasizes subrogation strategies to hold carriers accountable, ensuring that liability is appropriately assigned and incentivizing better security practices across the supply chain.
Four Strategic Measures to Combat Cargo Theft:
- Strengthen cybersecurity to reduce vulnerabilities in logistics planning.
- Implement real-time tracking and monitoring technologies to detect unauthorized activities.
- Conduct rigorous vetting of carriers and subcontractors to ensure accountability.
- Leverage analytics to identify fraud patterns and improve claims handling.
In a world where disruption is the new normal, the ability to adapt and innovate will define tomorrow's leaders. GB stands ready to support businesses through today's challenges, offering expertise, insights, and solutions to safeguard the future of global logistics.
Author
Brian Stout
George Willett
Sources
1"New ATRI Research Confirms the High Costs of Cargo Theft to Industry," American Transportation Research Institute, 8 Oct 2025
2Oladipo, Gloria. "Sugar High(St): More Than 12 Tons of KitKat's 'New Chocolate Range' Stolen in Italy," The Guardian, 28 Mar 2026
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